Bank Act (S.C. 1991, c. 46)

Marginal note:Exemption from foreign bank status

• 12. (1) The Minister may, by order, and subject to such terms and conditions as the Minister considers appropriate, exempt for the purposes of any provision of this Act any entity from being a foreign bank that, but for that order, would be a foreign bank.

• Marginal note:Revocation of order

  (2) The Minister may, by further order, revoke or vary any order made under subsection (1), and any such revocation or variation shall come into force three months after the date the further order is made, unless the Minister and the entity to which the order relates agree that the revocation or variation should come into force at some other time agreed by them.

• Marginal note:Notice

  (3) Before filing an application for an order referred to in subsection (1), an applicant shall publish a notice of intention to make the application in the Canada Gazette.

Marginal note:Cooperative basis

• 12.1 (1) For the purposes of this Act, a federal credit union is organized and carries on business on a cooperative basis if

  • (a) a majority of its members are natural persons;

  • (b) it provides financial services primarily to its members;

  • (c) membership in the federal credit union is wholly or primarily open, in a non-discriminatory manner, to persons who can use the services of the federal credit union and who are willing and able to accept the responsibilities of membership;

  • (d) each member has only one vote;

  • (e) a delegate has only one vote even though the delegate is a member or represents more than one member;

  • (f) dividends on any membership share are limited to the maximum percentage fixed in the federal credit union’s letters patent or by-laws; and

  • (g) surplus funds arising from the federal credit union’s operations are used

    • (i) to provide for the financial stability of the federal credit union,

    • (ii) to develop its business,

    • (iii) to provide or improve common services to members,

    • (iv) to provide for reserves or dividends on membership shares and shares,

    • (v) for community welfare or the propagation of cooperative enterprises, or

    • (vi) as a distribution to its members as a patronage allocation.

• Marginal note:Restrictions

  (2) Paragraph (1)(c) is subject to any restrictions in the by-laws of the federal credit union on the classes of persons to which membership may be available, as long as the restrictions are consistent with applicable laws with respect to human rights.

Marginal note:Member who is shareholder

12.2 For greater certainty, a member of a federal credit union who is also a shareholder of the federal credit union may exercise the rights given to a shareholder by this Act for all shares held by the member.